(Ecofin Agency) - The Kenya Pipeline Company (KPC) has revealed plans to acquire the Mombasa-based Oil refinery as the government prepares for commercial production in 2017.The company is currently in search of a consultant to assist in evaluating the viability of the refinery prior to the planned acquisition.

KPC had earlier announced its intention to transform the refinery into an oil storage facility.

“Kenya Pipeline Company Ltd invites sealed requests for proposals from eligible candidates for the provision of transaction advisory services for the acquisition of Kenya Petroleum Refineries Ltd (KPRL),” the company said.The Treasury Secretary, Henry Rotich (photo), had said that the fate of KPRL now depends on the crude oil that the country anticipates to export in 2017. The Kenyan government assumed control of the management of the facility after paying Sh500 million to acquire a 50% interest previously held by Essar Energy.

KPRL has been inactive since 2013, after plans for a Sh120 billion renovation were discarded.

In June, Rotich said the government will arrive at a decision on whether to transform the facility into a storage plant or upgrade the facility to refine crude oil from Turkana.According to the Treasury Secretary, a committee which includes the officials from the Ministry of Energy and the refinery management would have to agree on one of the options after the government concludes the acquisition of the 50% stake in the plant which will give the government 100% control.

In March, the government disclosed plans to convert the refinery into a storage plant to be managed by Kenya Pipeline Company but the scheduled export of crude could prompt a review of the plan.Africa Oil and partner Tullow Oil have said that they could commence a small-scale production of crude, which will be transported by road and rail to Mombasa, in 2017.“The committee is looking at all options. In the near future we will know what we will do with KPRL,” Rotich told Business Daily.

Anita Fatunji